THE South Australian Chamber of Mines and Energy has slammed the decision by the state’s Liberal Party to support an inquiry into hydraulic fracturing in the southeast, as it believes the outcome will be obvious.

Conventional gas production has been occurring in the state’s southeast for most of the past century, but investor excitement over unconventional potential which requires fraccing has earned plenty of negative attention, with opposition from landholders, local governments and green groups intensifying.

The SA Liberals said the terms of an inquiry into unconventional gas proposed by Greens MLC Mark Parnell last month were too broad.

After voting down the Greens’ proposal last month, Naracoorte-based MP Mitch Williams said without the oil and gas industry, South Australia would be in “diabolical trouble”. He said the inquiry, as proposed by the Greens, would “threaten” all that.

Yesterday, however, Mount Gambier Liberal member Troy Bell announced he would move a motion next week ask parliament to launch an inquiry into unconventional gas extraction in the state’s southeast.

"It is important that the parliament is able to hear from all stakeholders about this issue and that the community has an appropriate forum to raise their concerns," he told ABC.

Bell said he was “certain” to gain the support of investment and trade minister Martin Hamilton-Smith given it was the policy Hamilton-Smith, the defector from the Liberals, developed before the election.

SACOME said both major parties know the outcome of any inquiry – “with which the industry will fully cooperate” – would show hydraulic fracturing has a long, successful history of operating in the state without any of the negative outcomes to groundwater as promulgated to residents of the southeast by anti-fossil fuel campaigners.

“Moratoriums and inquiries in other states have all come to the same conclusion, and in this case where hydraulic fracturing would be carried out kilometres below the aquifer, the outcome is clear,” SACOME said.

SACOME CEO Jason Kuchel said the group was concerned that anti-fossil fuel campaigners would damage the reputation of the southeast and hurt the agricultural sector for its own ends, while playing on the fears of residents, “particularly farmers who face enough stress in their daily lives”.

“The whole of the business community in South Australia should be alarmed at this development by the Liberal Party, which claims to be pro-business and pro-jobs for South Australians, but is playing into the hands of a minority group of hard-core Green activists who have very effectively spun a tale of lies and half-truths to the community regarding drilling for unconventional gas,” Kuchel said.

He said the industry had been open and transparent to the community, government and other stakeholders about the drilling program in the southeast and in providing forums for people to raise their concerns and have their questions addressed.

He used the example of Beach Energy which has undertaken, and will continue to undertake, extensive community and industry consultation.

“Should fracture stimulation be proposed in the area, potentially affected stakeholders – including land owners, cultural heritage and native title groups, community groups and other government departments including the Department of Environment, Water, and Natural Resources and the Environmental Protection Agency – will have an opportunity for input through consultation requirements under the Petroleum and Geothermal Energy Act,” Kuchel said.

“Any inquiry will merely bring the same facts to the table which are already available. It would also serve to delay any potential development and jobs growth that South Australia so desperately needs at this point in time, for no meaningful reason.”

Australian Petroleum Production and Exploration Association chief operating officer western region, Stedman Ellis, also warned SA's parliament to be wary it did not "provide a megaphone for people who want to undermine the industry and the investment and jobs it provided".

"“South Australia has consistently been ranked in international surveys as the most attractive Australian state for oil and gas investment,” Ellis said.

“But this hard-earned reputation will be at risk if groups ideologically opposed to the industry are given a platform to spread fear and misinformation."

He noted a recent investigation in Western Australia which found that claims made in advertising by anti-gas activists had been “deceptive and misleading” showed that some green groups were not interested in facts.

“These are the same groups who will be lining up to appear before a Parliamentary inquiry,” Ellis said.